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The entire nation waiting for the Supreme Court to reveal its decision on the fate of the health care law now of course we won't find out until June.
So why is -- -- still going ahead with plans to hire 4000 new agents to -- fortunate.
And spending 300 million dollars building a system to oversee it.
Hi everybody I'm David has been welcome to Forbes on FOX let's go and focus with -- for.
Registrar guard Elizabeth MacDonald Rick -- Morgan Brandon.
And Mike Jose needs Steve does it worry that the -- is still spending money and hiring -- to do work on the same.
Sure David it's a power grab.
And so even if obamacare gets thrown out those agents will be there to harass us David -- we need as a nation is fewer tax collectors and more on -- the -- we need tax simplification.
And these IRS agent should then be able to contribute to the economy instead of sucking the blood out of it -- so there's a power -- stop it Rick should we be hiring 4000 new IRS agents to enforce something that we don't know is gonna be there and here.
Well the problem.
-- is that the 4000 agents the IRS is seeking.
Is not just to enforce obamacare that's just not correct they are looking for 4000 new agents and here's -- interesting little factoid.
They recently finished doing the audit are not how successful they do with agents.
And they found that that for every dollar we're spending on enforcement and the IRS we're getting back four dollars and thirty cents not a bad deal the 300 to 300 million by the way.
There's -- systems mostly to bring effect of the tax credits that obamacare would provide if obamacare survives.
Elizabeth MacDonald you have spent years covering the -- in fact the iris has an office -- the taxpayer advocate office.
And it's listed all of the new things because of the health -- -- specifically.
Because of the health care act that these -- regions are iris agents are gonna.
Do you know what -- -- political caravan moves on and if you know health reform does turn into a great pumpkin the IRS.
-- still have the -- to -- I talked to them for years sending another don't want to have to administer health reform.
They'd rather -- into a pool of light hair dryers cause this things with a look of death but the issue was is it ERS are he has a difficult time administering -- Federal tax code so the issue is so it's a private a big privacy problem for the IRS.
They had they get now to.
The iris -- not want to be in that position to have to be doing those kinds of.
And Maura -- an -- that -- mortgage even the -- admits that what -- -- you to do is to pry into people's lives in a way that the -- hasn't they already do a lot of it but they say and I'm quoting them now.
This is different from the type of information the -- typically deals with and some taxpayers may feel uncomfortable about sharing it with the IRS -- -- I do.
I yeah I mean are you really yeah I mean uncomfortable about -- but going back to appoint you not just -- just made about the fact they don't have enough agents just even enforce the tax -- That's part of why they are hiring 4900 agents.
Last year we saw about 5000.
IRS agents laid off.
And since and hide IRS has said that there having backlogs in refund sending -- refund checks to.
People that file their taxes already on and and that down they're having a hard time clicking okay -- -- billions of dollars in taxes -- Oh my -- -- in my -- -- useless ever going to help -- -- -- -- but specifically the -- is put out information about what -- -- agents are going to have to -- there's a whole list of -- by the way they're gonna have to investigate the cause of your family's health insurance plans whether a taxpayer had an offer of employer sponsored health insurance -- whole list -- specifically -- it's it is and that comes from the taxpayer advocate office itself.
My -- and this is -- theme that we've seen that's been recurring through the Obama administration it's the growing power of Big Brother.
And -- let's see if I understand -- Morgan correctly we might as well hire 20000 more agents because Washington gets such a great bang for the buck I'll what -- it like you know.
I think what you need to my early and had a tax code simpler.
So people don't have them companies don't have to waste so much time and money trying to figure it out -- -- how do you really invigorate the economy well I just for them.
You're guys just for the -- Morgan said that's not what -- navigator richt said that's a pretty good I -- very rich go ahead.
Act act act act act.
Yeah you know obamacare is not dead yet there's still probably about a 40% probability that it will get through now the great irony here of course is that President Obama repeatedly assured Americans.
That there would be no new taxes.
Surrounding his health care program so why expand the IRS but assuming I'll if obamacare does go down then they're just going to be more harassment.
Of the one group that this administration just doesn't like and that small business owners can only assume that every small business owners a tax cheat woman.
Well that's -- Do with health reform.
When we talk to the taxpayer advocate's office and when we've been covering the IRS and -- this story that you had the information you got their game becomes a story put up on Fox Business.
Less than half of small businesses actually insure.
They're workers so the issue is the government defines what is adequate care for individuals it defines what is affordable care that small businesses will give their workers.
And then the IRS gets a -- in and make sure that all of that is in combat you know.
In in compliance with the new health reform law this is a lot of information iris is gonna.
Getting about -- -- -- small exactly aides Steve as as GMAC points out half of the businesses in the United States don't ensure they're -- people this.
This gives -- a chance to dig into their records like they haven't had before.
Yet David in the tax code is so complicated that they want to squeeze money they can this undermines the basic fundamentals of the rule of law matters clarity.
And this idea of one dollar reinforcement for dollars in revenue that's like government spending one dollar government spending two dollars economic activity they spend these numbers to a fairly well all it doesn't hurt the economy somehow -- that was -- -- That that's not spin that's not fair it was an IRS audit that's always down on themselves and billion IRS always well you're right they're not give more than IRS they didn't.
Battered women's event that Iran is the way I -- -- -- -- more it was a G it was a GAO audit of the IRS.
And the IRS -- -- time and again they have had such struggles with dealing with the federal tax code this told me they do not like it when the congress.
-- with it every year and they have a.
Says prosecutor says race car guards I think he America's hit on it ended the point isn't we have this humongous.
Tax code that only the big corporations.
Feel comfortable -- because they have their lobbyists to get their car read their piece of the action small businesses can't deal what what it is now.
What this -- health care law does is to add a whole new group of rules and regs that.
Give the iris a chance to go into their box.
It is profoundly demoralizing to small business owners when they see a company like General Electric paying.
-- a tax rate that is the less than their CEOs personal income tax.
On mount and at the same time they're being harassed by more agents this is why we are knocking off.
One to 2% potential growth in this economy and why this recovery.
And it is so -- and why unemployment is still high.
-- -- you're always complaining about fairness that we have to have things fair and I to a certain extent aggregate but this makes things more or less player.
Does -- makes again war on terror when you have many more rules and regulations of the big guys can deal with but the small guys can't.
But you know what it's funny I was at the Supreme Court hearings earlier this week and do you know that the largest group I saw out there.
For obamacare was a small business organization you -- -- Certainly not I'm I don't know why and why are some guy -- We're gonna -- lately you know that most businesses are against this every bowl -- there so that I don't know that at all they -- come on we've seen poll after poll showing -- the reality is most women must always have yes the most of them are against that this is just a front organization all this it underscores is we need a simple flat tax period all right gang that has to be -- for now.
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